SALE OF BUSINESS

New Zealand Herald, Volume LXXIV, Issue 22909, 11 December 1937, Page 22

SALE OF BUSINESS

CANCELLATION SOUGHT ; SEQUEL TO BANKRUPTCY , [FBOat OUR OWN CORRESPONDENT] : HAMILTON, Friday v For the second time within two. clays the Statute of .Elizabeth was invoked in the Hamilton Supreme Court yesterday, when an application was- heard, asking . that tho. agreement to sell- a business formerly owned by Hugh Eric Frew, caterer, of Otorohanga, to' his brother, Jeffrey Allen Frew, tea room manager, y of Otorohanga, should be set aside; Mr. Justice' Callan -presided. Mr. Thwaites. for the official/ assignee- in the estate of H. E. Freiy, made the application, and Mr. Johnson opposed it on-behalf of J. A. Frew. The. official . assignee further sought an order tfiat accounts should be taken of the business of , J. A! Frew and that the profits should be paid to .the official assignee. - The first application was made on the grounds that the sale of the business, made on May 10, 1937. was void by virtue of secHon 26 (b) of thb Bankruptcy Act, 1908, and that it was fraudulent and void bv virtue the provisions.'of Statute 13, Elizabeth 5. Evidence was given by J. A. Frewthat at his brother's request he borrowed £IOO and paid this sum to his brother for the business. "As far as hej was concerned the sale wan a genuine one/ and it was not uatil Slater that he learned that there were debts totalling over £2OO owing by his brother in connection with the business. In /answer to His Honor, witness admitted that his brother "had done a terrible thing to him," After legal argument His Honor reserved his decision.